Shadow chancellor says country is 鈥榮inking in sea of debt鈥� and outlines plans to raise retirement age, cap pensions and freeze public sector pay to cut costs

The Conservative party will have to save tens of billions of pounds by cutting departmental budgets if it comes to power next year, shadow chancellor George Osborne confirmed today.

Speaking at the Conservative party conference in Manchester, Osborne said the country was 鈥渟inking in a sea of debt鈥� and set out plans to cut costs by 拢23bn over the next parliament.

He said departmental budgets would have 鈥渢o be set to get more for less across the public sector鈥� through processes including eliminating 鈥渇ailing鈥� programmes and reviewing procurement.

However, Osborne fell short of outlining specific plans for capital spending cuts.

Specific cost-saving measures he mentioned include raising the retirement age to 66, capping government pensions, freezing public sector pay in 2011 and slashing quango and Whitehall administrative costs by one third.

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